The Pros and Cons of Owning A Rental Property in Long Island

Owning a rental property can be a great way to create extra income. But like any investment, it comes with its fair share of pros and cons. Here are a few things to consider before you begin investing in rental properties.

Pros and Cons of Owning A Rental Property in Long Island

The Pros:

Someone Else Pays Your Mortgage!

Sounds great right? Well, it really can be if you have the right tenants! Owning a rental will create an income stream you can use to pay the mortgage itself. With the right rental, you will create enough income to pay all of the operating expenses for owning it, plus a profit on the side.

People Will Always Need Somewhere to Live

Real estate is a sound investment. Andrew Carnegie once said, “Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.” If he was alive today, he would be worth $309 billion.

Income Tax Deductions

You can deduct all sorts of things on a rental property. You must keep detailed records and receipts of everything you intend to write off.

You can deduct maintenance and repairs. This includes everything from a new roof to replacing a light bulb.

HOA Fees

You can deduct any portion of the utilities you are paying for

Retire in Style

Have you found a home you love? But maybe it’s not in the ideal location for your work commute. Or maybe it’s not the right size for your family. It’s never too early to think about retirement! If you find a home you absolutely love, a strategy many use is to purchase it and rent it out until they are ready to move in! The home can usually pay for itself, and you are able to hold on to your dream home.

Passive Side Income

If you get all your ducks in a row, and have a low-maintenance rental with great tenants, owning a rental can be excellent passive side income.

The Cons:

You Get “No Respect!”

Aside from the usual wear and tear, some tenants will do little to nothing to take care of the home. While you are in charge of maintaining a livable house, you cannot control what they do. You could have to deal with a hole in the wall broken windows of faulty plumbing you haven’t been made aware of.

You Might Get Sued

Hey, it happens. People could take you to small claims over a deposit you kept, or an injury sustained on the property. Their claims can be frivolous and without merit, but it can still take time and energy to deal with.

Additional Costs

The home needs to be properly maintained. Even if it is in the lease that they are in charge of mowing or maintaining the pool, it ultimately your investment. The repairs and yearly costs to maintain the property should be considered before you make an investment.

Stress

Plain and simple, being a landlord can be stressful. If you get a high maintenance tenant, your phone could be ringing at 11 at night because they saw a bug. In addition, if the rental becomes run down over time, the repairs bill could be continual. Also, with some tenants, you might be chasing down your rent each month.

Money

What happens if the price of rental drops, but your mortgage stays the same? Or what if property taxes go up, but you are not in a place to increase the rent? You will want to consider all scenarios and make sure you have some wiggle room with the rent you are charging. Don’t cut it too close that you get yourself in a bind. In addition, financing the second property can have additional hurdles before a bank can help with financing.

As with any investment, make sure you thoroughly research the pros and cons. Find a property that will be low maintenance and make sure to thoroughly screen all prospective tenants!

If you want to learn more about owning a rental property in Long Island send us an email now or give our team a call today! 516-704-7025

My name is Joe Cordes and I am the owner of Comax Properties, a local real estate solutions company. We're dedicated to helping Long Island homeowners who need a solution for their house or mortgage trouble. If you need to sell a house in Long Island call me at 516-704-7025 so we can talk about your specific needs.

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I had a great experience working with Joe from Comax Properties with a house I owned in Hempstead NY. He was extremely professional and honest and did exactly what he said he was going to do. He was always very courteous and was an absolute pleasure to deal with. I would highly recommend Comax Properties

I met Joe Cordes when two different clients of mine need funding on homes that they were purchasing from Comax Properties in Long Island NY. I was immediately impressed by the high quality of the renovated homes he was selling. He definitely takes pride in putting a quality house on the market. He is always very straight forward and honest and resolves any issues that arise immediately. I deal with a lot of real estate professionals in my business and Joe is one of the best. I highly recommend Joe and his company.

Joe was instrumental in helping me in the sale of my moms house. It was already a stressful and overwhelming situation that was difficult to tackle at times, and selling her home wasn’t something I wanted to worry about. He was extremely informative every step of the process. He even went above and beyond to help me in other ways with my own home, even though it had nothing to do with the sale. If you’re looking into selling your home, Joe is the right person to go with!

Joe was an absolute pleasure to work with. While we decided to go a different route in the end, the information and guidance that he provided was priceless. It’s not often that you find someone willing to help you when they have nothing to gain from it. If an opportunity presents itself in the future for me to work with him again I wouldn’t hesitate and you shouldn’t either.

Erika Coble, Lynbrook, NY

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I first met Joe from Comax Properties while I was trying to sell my parent’s property in mid-’17. He showed up to take a look, maybe make an offer…but quickly realized that this particular property was not going to be a good fit for his interests. With most people in the real estate business, once they realize there’s no money in it for them…you see their taillights in about 3 seconds. But…not Joe! Realizing he had the knowledge & expertise that could ease & expedite what I wanted to do, he generosity offered his time & very helpful & dead-on accurate advice…spending well over an hour with me, discussing my situation…which was EXTREMELY helpful, and ultimately led to my getting even a greater selling price for the property than originally thought possible. For his time & guidance, he asked for nothing…offering only a friendly handshake & his personal contact info should I have any other questions that I wanted to get help with. In this day & age of ‘quick buck’ shysters, you just don’t find people like Joe too often…a person of high moral caliber, genuinely concerned & interested in “other” people’s success…even when it won’t benefit him at all. Joe, I want to thank you sir! I very much appreciate what you did for me & my family. You’re a true gentleman! And if you’re in the market for, or need Joe & his expertise…you can feel comfortable that you’re not dealing with a ‘fly-by-night’ type of person…because Joe’s one of the good ones, a man of high moral character & responsibility. Good luck in your future endeavors!!

We are a real estate solutions agency that specializes in helping homeowners get rid of burdensome houses fast. We are investors and problem solvers who can buy your house fast with a fair all cash offer. We also offer free foreclosure and short sale advise and assistance.